Scolari denies tax evasion as investigation opens up

[Desire]

Scolari denies tax evasion as investigation opens up

By Sacha Pisani
May 14, 2014 10:35:00 AM

The 65-year-old has is adamant he has don nothing wrong after Portuguese authorities opened a criminal investigation over offshore money laundering

Luiz Felipe Scolari has moved quickly to deny any wrongdoing after the Portuguese government opened an investigation into €7 million of unpaid taxes during the Brazil coach's spell in charge of Portugal.

Scolari, who led the Iberian country's national team from 2003 to 2008, is at the centre of a probe over suspected money laundering of tax due on his salary during his five years in Europe.

Offshorealert.com and Folha de Sao Paulo report that the 65-year-old is suspected of having been involved with companies in the Netherlands, United Kingdom, Bahamas and British Virgin Islands as part of a tax avoidance scheme.

But Scolari has rejected the accusations in a statement released by the Brazilian Football Confederation (CBF) on Tuesday.

"I have filed all my tax returns correctly," said Scolari, who recently named his 23-man squad for this summer's World Cup.

"In every country that I've worked, I've always claimed my income. I'm absolutely sure that I've filed all my tax returns correctly.

"If there's something wrong, it's not with me. The justice system will narrow the facts."

The news comes less than a month before Scolari's Brazil side take on Croatia in the opening fixture of the 2014 World Cup.

 

[Awake]

Portugal says investigating Brazil coach over taxes

LISBON Wed May 14, 2014 5:14pm BST

Brazil's coach Luiz Felipe Scolari attends the Champions League quarter-final first leg soccer match between Chelsea and Paris St Germain at the Parc des Princes Stadium in Paris, April 2, 2014. Picture taken April 2, 2014. REUTERS/Gonzalo Fuentes

(Reuters) - Portugal's Prosecutor General's office is investigating Brazil's national soccer coach Luiz Felipe Scolari for alleged tax evasion while he coached the Portuguese squad, and has requested help abroad, including in the United States, officials said.

The investigation adds to a list of World Cup host Brazil's concerns before the tournament kicks off in 12 Brazilian cities next month. Preparations have been plagued by social unrest and delays in delivering sports venues and infrastructure projects.

"We confirm that Luiz Felipe Scolari was named an arguido (suspect) within an investigation being conducted... The inquiry is investigating facts that occurred between 2003 and 2008 and are related to possible breach of tax regulations," the prosecutor's office said on Wednesday.

Scolari, known as Felipao, or Big Phil, earlier denied the allegations after the first media reports and said he paid all the required taxes while he worked in Portugal. He urged the relevant officials "to investigate all the facts.".

Under Portuguese law the status of "arguido", or formal suspect, differs from the suspect status in other legal systems as it gives the person certain legal advantages in being questioned and does not per se involve a formal accusation.

The prosecutor's office said the Portuguese legal authorities had requested cooperation of their counterparts in the Netherlands, Britain, the United States and Brazil.

According to Brazilian newspaper Folha de S. Paulo the investigation targets some 7 million euros of income allegedly unreported by Scolari and deposited in offshore accounts.

Scolari, who won the World Cup as coach for Brazil in 2002, hopes to repeat the feat this year with his home country as the host. The tournament which kicks off June 12.

Under Scolari, Portugal reached the final of Euro 2004 - which was among the country's top soccer achievements.

(Reporting By Andrei Khalip; Editing by Angus MacSwan)